The Hungarian forint continued to recoup its previous looses on Tuesday morning in step with a recovery of the Turkish lira and a bullish price action in core bond markets. The release of the preliminary GDP figure for the first quarter, which matched the analysts’ consensus (4.5% y/y), was slightly supportive too.
Intra-day: the forint was heading south almost the whole session. The EUR/HUF pair opened at the 265.90 and reached its intra-day low at the 262.30 in the afternoon. Technically, it seems that the pair have rediscovered its former strong support standing at the 262.35 level. Given the little interesting domestic calendar, the forint will again primarily monitor a development in vulnerable emerging markets, which could be heavily influenced by today’s release of the US CPI figures. Nevertheless, should core bond markets remain in a positive mode, the forint’s rebound might be even more impressive. But first, the EUR/HUF would have to broke the 262.35 support.
ČSOB - Investment research